Dragged down by the upstream and downstream chemical fiber companies is a huge loss last year

China's largest modern chemical fiber and chemical fiber raw material production base Yizheng Chemical Fiber (600871, SH) released its annual report yesterday. The annual report mentioned that the company had a loss of 1.645 billion yuan in 2008. Jilin Chemical Fiber (000420, SZ) also mentioned in its latest performance forecast. In 2008, the company or the loss of 350 million to 370 million yuan.

In 2008, the net profit of the chemical fiber industry fell significantly compared with the previous year. China Chemical Fiber Industry Association statistics show that from January to August 2008, the domestic chemical fiber industry realized a total profit of 4.713 billion yuan, a significant decrease of 47.1% year-on-year; loss of corporate losses 4.126 billion yuan, a substantial increase of 1.2 times year-on-year; 24.43%, a year-on-year increase of 5.6 percentage points. In 2008, Nanjing Chemical Fiber achieved operating revenue of 367,258,800 yuan, a year-on-year decrease of 50.22%; net profit of 2.0894 million yuan, a year-on-year decrease of 94.67%. Lianhua Synfuels also issued a performance forecast. It is expected that the company will lose 35 million yuan in 2008.

Some analysts believe that the downturn in the chemical fiber industry in 2008 led to a decline in the performance of the chemical fiber industry.

In an interview with the “Daily Economic News”, Yizheng Chemical Fiber’s secretary general, Wu Zhaohui, said that in the first half of 2008, the domestic credit crunch made it difficult for the downstream textile industry to restrict liquidity and business development was difficult. Coupled with lower export tax rebates, sales of textiles have also been hit hard. In the second half of the year, insufficient demand from overseas and domestic markets led to the dilemma of the textile industry. ??

The influence of oil in the upstream industry of chemical fiber can not be ignored. The significant fluctuations in international crude oil prices from the beginning of 2008 to the end of the year have had a major impact on the chemical fiber industry, which has increased the difficulty of enterprises in judging the raw material prices and the operation, and increased the company’s operating risks.

In 2008, the overall chemical fiber industry was not very good. ?? Associate chemical industry analyst Xiao Hui pointed out to the "Daily Economic News" that although demand is now relatively stable, but the excess capacity is very serious. ??

Wang Qiang, editor-in-chief of First Textile Network, put forward his own views on the development of the chemical fiber industry: On the one hand, companies should reduce their own costs as much as possible, on the other hand, they must develop product structures and develop products with high added value. However, Xiao Hui believes that: The chemical fiber industry is a mature industry, and the cost of the company is difficult to reduce substantially. ??

Xiao Hui further emphasized that: The chemical industry's own profitability is determined by the relationship between supply and demand. Too much capacity is the root cause of losses. If supply can be reduced and some companies reduced, the demand will be relatively stable. ??

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